Online Assessment Tools

Calculate the Cost of Turnover

High turnover can sabotage your company's bottom line. To estimate the cost of turnover in your organization, use the following formula: 

25% of annual salary plus cost of benefits. (Typical benefits amount to about 30% of wages.*)

Select a department or job function that has a lot of turnover.


Enter the annual wages of the employees who left below.

Annual Wage:

Use an actual number or, lacking exact statistics, estimate the number of people who left the job or department during the past 12 months. Write that number below.

Total Number of Employees Who Left:


Total Cost of Turnover:

Here's an example:

1. Annual wage: $35,000 x .25 = $8,750
2. Annual wage: $35,000 x .30 = $10,500 x .25 = $2,625
3. Total turnover cost per employee: $8,750 + $2,625 = $11,375
4. Total number of employees who left: 10
5. Total cost of turnover: $11,375 x 10 = $113,750

Source: Saratoga Institute and Kepner-Tregoe Inc.
*total cost of a complete benefits package on top of payroll.

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